10-QPeriod: Q1 FY2022

AFLAC INC Quarterly Report for Q1 Ended Mar 31, 2022

Filed April 29, 2022For Securities:AFL

Summary

Aflac Incorporated reported its first quarter 2022 results, with net earnings of $1.03 billion, or $1.58 per diluted share, down from $1.29 billion, or $1.87 per diluted share, in the prior year. Despite a challenging market environment marked by economic uncertainty, inflation, and geopolitical events impacting global growth and currency exchange rates (specifically a weaker Yen), Aflac demonstrated resilience. The company's adjusted earnings were $927 million, or $1.42 per diluted share. The weaker Yen negatively impacted diluted EPS by $0.06. Aflac U.S. saw a notable increase in sales (up 19.0%), driven by improved pandemic conditions and growth initiatives. Conversely, Aflac Japan's sales in Yen terms decreased by 14.8%, primarily due to ongoing pandemic conditions and a strong prior year comparable. The company returned $750 million to shareholders through share repurchases and dividends, and its capital position remains strong, with shareholders' equity at $29.5 billion. The company also announced a 21.2% increase in its second quarter cash dividend.

Financial Highlights

34 data points
Beta

Revenue

$5.17B

Net Income

$1.05B

20.2% Net Margin

EPS (Diluted)

$1.60

Total Assets

$147.05B

Cash & Equivalents

$4.28B

Free Cash Flow

$1.26B

Financial Statements
Beta
Revenue$5.17B
SG&A Expenses$833.00M
Operating Expenses$1.40B
Operating Income$1.16B
Interest Expense$41.00M
Net Income$1.05B
EPS (Basic)$1.61
EPS (Diluted)$1.60
Shares Outstanding (Basic)649.75M
Shares Outstanding (Diluted)652.83M

Key Highlights

  • 1Net earnings decreased to $1.03 billion ($1.58/share) from $1.29 billion ($1.87/share) year-over-year.
  • 2Adjusted earnings were $927 million ($1.42/share), with the weaker Yen impacting EPS by $0.06.
  • 3Aflac U.S. sales increased by 19.0%, while Aflac Japan sales (in Yen) decreased by 14.8%.
  • 4Total revenues were $5.27 billion, down from $5.87 billion in the prior year.
  • 5Total investments and cash stood at $132.6 billion at quarter-end.
  • 6The company repurchased $500 million of its common stock in the quarter and increased its quarterly dividend by 21.2%.
  • 7Shareholders' equity was $29.5 billion, or $45.75 per share, at March 31, 2022.

Frequently Asked Questions

Aflac reported net earnings of $1.03 billion, or $1.58 per diluted share, for the first quarter of 2022. This is a decrease compared to the $1.29 billion, or $1.87 per diluted share, reported in the first quarter of 2021.

The weaker Yen relative to the U.S. dollar negatively impacted Aflac's reported results. Management estimates that the weaker Yen reduced adjusted earnings per diluted share by $0.06 for the first quarter of 2022.

Aflac U.S. experienced a positive sales trend, with an increase of 19.0% driven by improved pandemic conditions and growth initiatives. Aflac Japan's sales, however, decreased by 14.8% in Yen terms due to ongoing pandemic conditions and a strong prior year comparable period.

Aflac remains committed to capital management and shareholder returns. In the first quarter of 2022, the company repurchased $500 million of its common stock and paid dividends totaling $259 million. Furthermore, the board of directors declared a second quarter cash dividend of $0.40 per share, a 21.2% increase year-over-year.